Netegrity Plans for Provisioning With $42.5M Buy
Access and identity management firm Netegrity has bought Business Layers in a cash and stock deal worth approximately $42.5 million.
Israel-based Business Layers provides open, standards-based software automating point of entry to networks and a single point of administration for Web-based services.
Under the deal's terms, Business Layers receives $15 million in cash and $27.5 million in Netegrity stock.
A Netegrity spokesperson said most of Business Layers several dozen employees will be retained but Izhar Shay, the company's president and CEO, will not join Netegrity.
Waltham, Mass.-based Netegrity, which has been licensing Business Layers' eProvision software for more than a year, will now offer the product and all of its components under the Netegrity IdentityMinder brand.
The company said it also plans to continue to invest in the provisioning technology as a stand alone product.
Provisioning software is considered the cornerstone of identity and security management systems. It allows companies to manage employee, partner and customer access to different applications, systems and architectures by allocating IT resources according to corporate policy.
“Today, customers need effective solutions to solve their specific access management, identity administration, and provisioning needs. However, the market is clearly evolving to an integrated identity and access management solution that spans the enterprise and beyond,” Barry Bycoff, Netegrity's chairman, president and CEO, said in a statement.
Netegrity licenses its products to more than 750 organizations worldwide, including a number of Fortune 500 companies.
The company says, excluding the Business Layers acquisition costs, it expects to turn a profit in the fourth quarter of 2003. For the first nine months of this year, Netegrity generated $55.9 million in revenue.
